Social Security: what is the rule for people over 66 to take into account in 2022?
There are changes for the retirement age for people reaching 66 this year, meaning retiring on your birthday will hurt earnings for the rest of your life.
A person can begin to receive Social Security benefits at sixty-two years old. However, if a worker waits until sixty-five or sixty-seven, depending on the year they were born, they will be able to receive a higher benefit amount.
In 1983, Congress passed a bill that slowly increased the retirement age for workers after 1960. Before, at sixty-two retirees could claim eighty percent of their Social Security benefits. Now, those born after 1960 will only claim seventy percent of their total benefit amount if they opt to retire early.
Due to that law passed by Congress, there is a change for retirees who will be turning 66 this year, meaning they need to work longer than previously. If not, they will be given a lower pension than is possible.
Important things to consider when retiring
Actual age of retirement to prevent early retirement punishments, based on birth year:
In comparison to last year, you need to be working an extra two months after your birthday to receive your full state pension, if your 66th birthday is this year.
You will need to retire at 66 years and four months.
Adding to that, a retiree must have worked at least thirty-five years to receive as much of a state pension as possible. If one chooses to retire before working thirty-five years, the Social Security Administration will "use a zero for each year without earnings when we calculate the number of retirement benefits you are due. Years with no earnings reduce your retirement benefit amount."